The reporting system will work as follows:

Who will report?

All individuals, partnerships, and corporations whose principal business activity is construction will have to report payments made to subcontractors.

Type of payments to be reported:

Payments to subcontractors for construction services have to be reported. Goods-only payments do not have to be reported. Mixed goods and service payments have to be reported if there is a service component of $500 or more. Wages paid to employees are not reported.

Who is classified as a subcontractor?

A subcontractor is an individual, partnership, or corporation that provides construction services. Subcontractors include businesses that are below the $30,000 limit for goods and services tax (GST) registration purposes.

The information to be reported:

Name: The name or trade name under which the subcontractor carried on business

Address: The business address of the subcontractor.

Identifier: This would be a Business Number (BN) or, for an individual without a BN, a social insurance number (SIN).

Amount: The total of amounts paid or credited to a subcontractor for the reporting period for construction services. These amounts include provincial sales tax, goods and services tax, and harmonized sales tax when these apply.

Reporting period:

Businesses can report payments on either a calendar or fiscal year basis. Payments made after December 31, 1998 have to be reported.

If you choose the fiscal year reporting, the first reporting period will begin on January 1, 1999 and end of your corporation's fiscal year-end. This return will be due on June 30, 2000. For example, if your fiscal year end is September 30, 1999, your first report period will be from January 1, 1999 to September 30, 1999 and will be due June 30, 2000. Your second reporting period will be from October 1, 1999 to September 30, 2000 and will be due March 31, 2001.

If you require additional information, please do not hesitate to contact MacNeill Edmundson LLP at info@meb.on.ca.